BILL NUMBER: SB 1136	CHAPTERED  09/30/00

	CHAPTER   1056
	FILED WITH SECRETARY OF STATE   SEPTEMBER 30, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 30, 2000
	PASSED THE SENATE   AUGUST 31, 2000
	PASSED THE ASSEMBLY   AUGUST 31, 2000
	AMENDED IN ASSEMBLY   AUGUST 25, 2000
	AMENDED IN ASSEMBLY   AUGUST 14, 2000
	AMENDED IN ASSEMBLY   JULY 5, 2000
	AMENDED IN ASSEMBLY   JUNE 15, 2000
	AMENDED IN ASSEMBLY   MARCH 30, 2000

INTRODUCED BY   Senator Vasconcellos
   (Coauthor:  Assembly Member Maldonado)

                        FEBRUARY 26, 1999

   An act to amend Sections 15310, 15311, 15313, 15325, and 15363.6
of, to add Sections 15310.1, 15329, 15333.10, and 15333.11 to, and to
add Article 3.9 (commencing with Section 15348) to Chapter 1 of Part
6.7 of Division 3 of Title 2 of, the Government Code, and to add
Section 22553.2 to, and to repeal Section 22002.5 of, the Public
Utilities Code, relating to technology.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1136, Vasconcellos.   Technology.
   (1) Existing law establishes the Trade and Commerce Agency and
describes the duties of the Secretary of Trade and Commerce.
Existing law establishes various offices and programs within the
Trade and Commerce Agency, including the Competitive Technology
Advisory Committee.
   This bill would rename the Trade and Commerce Agency the
Technology, Trade, and Commerce Agency, and establish additional
duties for its secretary.   It would also, among other things,
establish the Division of Science, Technology, and Innovation within
the Technology, Trade, and Commerce Agency to administer specified
existing offices and programs, would provide that the division is
under the supervision of a Deputy Secretary of Science, Technology,
and Innovation, and would specify his or her duties.  The bill would
repeal the Competitive Technology Advisory Committee and would
establish the California Research and Development Council and the
Small Business Competitiveness  Council, as specified.
   (2) Existing law provides for various programs for the development
of spaceport capacity in the state, and authorizes the existence of
the California Spaceport Authority in this regard.
   This bill would require the authority to designate spaceports
based upon applications by various entities, including special
districts, and would define various terms for this purpose.
   (3) Existing law sets forth the authority and duties of airport
districts in developing airports and air navigation facilities.
Existing law, to take effect January 1, 2001, authorizes airport
districts to provide and maintain spaceports and landing places for
space reentry traffic, and defines various terms for this purpose.
   This bill would specify that an airport district may not exercise
authority for the development of spaceports unless it has been
designated as a spaceport by the California Spaceport Authority.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California is the world's leader in advancing cutting-edge
science and technology and in creating new technology enterprises,
but the infrastructure that helped achieve this status will not be
adequate for future growth.
   (b) A recent study by the California Council on Science and
Technology found that there is a need for increased partnerships
between industry, academia, and government in order to expand the
state's research base upon which industry relies.
   (c) The same study also found that state government science and
technology research and applied application programs are
uncoordinated and not leveraged together to provide services to
industry in a flexible, agile, and targeted way and called for a more
strategic focus of state research and development programs and tax
incentives.
   (d) Private foundation funding is very important to basic and
applied research.  The state has not developed a way to help top
researchers position themselves to receive these funds.
   (e) The amount of state research and development funding is not
tracked or coordinated in a way that increases the state's technology
competitive advantage.
   (f) Although California is the world leader in venture capital
investments, there is a need to develop other early-stage funding
methods for selected technology areas and small startup companies.
   (g) The California Research Bureau, in its profile of California
computer and Internet users, has found that there is, indeed, a
significant "digital divide" between various groups within the state
based on income, educational level, age, race, and ethnicity.  This
digital divide is isolating those without computer equipment and
skills from participation in the new global economy.  The report also
found that the Hispanic community, while being one of the fastest
growing groups in California, is lagging behind other groups.
  SEC. 2.  It is the intent of the Legislature in enacting this act
to provide for all of the following:
   (a) Establishment of a position for a high-level, high-visibility
state official responsible for overall development and articulation
of state policies and programs that support "new technology" as the
underpinning of California's economic growth.
   (b) Addressing the "digital divide" issue by encouraging broader
access to technology and more equity in sharing in the benefits of
technology for all Californians.
   (c) Coordination of disparate high-technology programs throughout
state government.
   (d) Creation of financial incentives for private sector
participation in access to technology and technology programs.
   (e) Maximization of participation of California industries and
universities in federal research and development activities,
including accessing grant programs.
   (f) Implementation of a strategic planning process within state
government that will ensure that research and development funding
allocation decisions are based on economic considerations.
   (g) State leadership to encourage industry to continue and expand
support of university-based research and development.
   (h) Development of plans and programs for improving access to
capital for technology-based entrepreneurs.
  SEC. 3.  Section 15310 of the Government Code is amended to read:
   15310.  The following definitions shall apply to this part:
   (a) "Agency" means the Technology, Trade, and Commerce Agency.
   (b) "Secretary" means the Secretary of Technology, Trade, and
Commerce.
  SEC. 4.  Section 15310.1 is added to the Government Code, to read:

   15310.1.  Whenever the term "Trade and Commerce Agency" appears in
any law, it means the "Technology, Trade, and Commerce Agency," and
whenever the term "Secretary of the Trade and Commerce Agency"
appears in any law, it means the "Secretary of Technology, Trade, and
Commerce."
  SEC. 5.  Section 15311 of the Government Code is amended to read:
   15311.  The Technology, Trade, and Commerce Agency is administered
by the Secretary of Technology, Trade, and Commerce who shall be
appointed by the Governor with the advice and consent of the Senate,
and who shall be paid a salary at the amount prescribed under Section
11550.
  SEC. 6.  Section 15313 of the Government Code is amended to read:
   15313.  It is the intent of the Legislature in enacting this
chapter that the duties of the Business, Transportation and Housing
Agency regarding the California State World Trade Commission, the
Department of Commerce, and the Trade and Commerce Agency be
transferred to the Technology, Trade, and Commerce Agency.  Any
reference in this code to duties of the Business, Transportation and
Housing Agency with regard to the department, office, or Trade and
Commerce Agency shall be deemed to mean the Technology, Trade, and
Commerce Agency.
  SEC. 7.  Section 15325 of the Government Code is amended to read:
   15325.  The work of the agency shall be divided into at least the
following:
   (a) The Office of Economic Research.
   (b) The Office of Local Development.
   (c) The Office of Business Development.
   (d) The Office of Tourism.
   (e) The Office of Small Business.
   (f) The Film Office.
   (g) The Office of Marketing and Communications.
   (h) The Office of Strategic Technology.
   (i) The Office of Foreign Investment.
   (j) The California State World Trade Commission, including
international trade and investment offices, the Office of Export
Development, and the Export Finance Office.
   (k) California Field Offices.
   (l) The Office of Trade Policy and Research.
   (m) The Office of Permit Assistance.
   (n) The Office of California-Mexico Affairs.
   (o) The Office of Military Base Retention.
   (p) The Division of Science, Technology, and Innovation.
  SEC. 8.  Section 15329 is added to the Government Code, to read:
   15329.  (a) There is hereby established within the Technology,
Trade, and Commerce Agency the Division of Science, Technology, and
Innovation.  The Division of Science, Technology, and Innovation
shall be under the supervision of a Deputy Secretary of Science,
Technology, and Innovation who shall be appointed by, and serve at
the pleasure of, the Governor.
   (b) The deputy secretary's duties shall include, but not be
limited to, all of the following:
   (1) Oversight of the Division of Science, Technology, and
Innovation.
   (2) Responsibility for identifying science and technology trends,
including, but not limited to, information technology,
telecommunications, and e-commerce, that are significant to the
state, particularly for small businesses, and, in consultation with
the Small Business Competitiveness Council, developing a state
strategy to address them.  This shall be coordinated with the
California Economic Strategy Panel.
   (3) Working closely with industry, academia, and government to
encourage technology research, development, transfer, and
applications to particularly meet the needs of small businesses.
   (4) Working closely with the federal government to maximize
participation of state industries, small businesses, national
laboratories, and universities in technology research, and in
obtaining research and development funding.
   (5) Working closely with private foundations to maximize
participation of state industries, small businesses, national
laboratories, and universities, including the University of
California, the California State University, and private
universities, in technology research and engineering, and in
obtaining research and development funding.
   (6) In consultation with the California Research and Funding
Council, evaluating proposals for, and making recommendations on, the
coordination, consolidation, or relocation of research and
development programs throughout state government.
   (7) Developing plans and implementing programs for improving
access to early-stage capital investment, particularly for
technology-based small businesses in the state.
   (8) Coordinating state science and technology policies and
programs.
   (9) Participating in the development and management of the Small
Business Development Center program.
   (10) Developing and administering grant and matching grant
programs that provide funding to appropriate public and private
entities for increased access to digital technology for all citizens
of the state.
   (c) Notwithstanding any other provision of law, the Division of
Science, Technology, and Innovation shall administer all programs
established pursuant to Section 15333.2, the California Space and
Technology Alliance established pursuant to Section 15333.3, the
Highway to Space Program established pursuant to Section 15333.4, the
Office of Strategic Technology established pursuant to Section
15333.5, the Competitive Technology Advisory Committee established
pursuant to former Section 15333.6, the California Research and
Funding Council established pursuant to Section 15333.10, the Small
Business Competitiveness Council established pursuant to Section
15333.11, the Regional Technology Alliances established pursuant to
Section 15379.2, the Challenge Grant Program established pursuant to
Section 15379.3, the Technology Planning Program established pursuant
to Section 15379.14, and the Manufacturing Technology Program
established pursuant to Section 15379.15.
   (d) For purposes of this section, the following definitions shall
apply:
   (1) "Information technology" includes, but is not limited to, all
electronic technology systems and services, automated information
handling, system design and analysis, conversion of data, computer
programming, information storage and retrieval, telecommunications
that include voice, video, and data communications, requisite system
controls, simulation, electronic commerce, and all related
interactions between people and machines.
   (2) "Technology" includes, but is not limited to, the application
of science and engineering to research and development, especially
for industrial or commercial objectives, in sectors that include
telecommunications, information technologies, electronics,
biochemistry, medicine, agriculture, transportation, space, and
aerospace.
  SEC. 9.  Section 15333.6 of the Government Code is repealed.
  SEC. 10.  Section 15333.10 is added to the Government Code, to
read:
   15333.10.  The California Research and Development Council is
hereby established in the Division of Science, Technology, and
Innovation to advise the deputy secretary on the role that government
is playing in supporting California research and development
activities, the role of research and development tax incentives, and
related incentives, and to make recommendations on how government
funding can be effectively coordinated, and used to leverage
California's research and development competitiveness.
  SEC. 11.  Section 15333.11 is added to the Government Code, to
read:
   15333.11.  The Small Business Competitiveness Council is
established in the Division of Science, Technology, and Innovation to
advise the deputy secretary on how technology can improve the
competitive advantage of small businesses and manufacturers by
identifying industry driven vocational education, training, and
technical assistance priorities, and developing a collaborative
strategy with higher education and manufacturing technology centers,
small business development centers, community college applied
technology centers, trade centers, and other services to meet these
needs, and a means to determine if the priorities are being met by
the respective programs.
  SEC. 12.  Article 3.9 (commencing with Section 15348) is added to
Chapter 1 of Part 6.7 of Division 3 of Title 2 of the Government
Code, to read:

      Article 3.9.  Designation of Spaceports

   15348.  For purposes of this article, the following definitions
apply:
   (a) "Agency" means the Technology, Trade, and Commerce Agency.
   (b) "Authority" means the California Spaceport Authority.
   (c) "Date of designation" means the date that the spaceport
receives designation by the authority pursuant to Section 15348.5.
   (d) "Governing body" means the governing body of a city, county,
city and county, special district, or joint powers authority, as
appropriate.
   (e) "Launch" means to place or attempt to place a launch vehicle
into a ballistic, suborbital, or orbital trajectory, into Earth orbit
in outer space, or otherwise into outer space.  It is also a means
of placing a commercial, civil, or military payload into Earth orbit
or beyond.  It includes all activities involved in the preparation of
a launch vehicle for flight, including all processing, servicing,
and support activities that take place at a launch site or at a
California mission control support site for ocean launches.  A
"launch" begins with the arrival of the launch vehicle or payload at
the launch site.
   (f) "Launch site" means a location from which a space launch or
operation directly associated with a space launch takes place, a
location at which a launch vehicle or its payload, if any, is
intended to land, or as defined in the Commercial Space Launch Act
(49 U.S.C.A. Sec. 70101 and following).  The site includes any
right-of-way directly associated with the space launch or reentry
operations and all facilities and support infrastructure related to
launch, reentry, or payload processing.
   (g) "Launch vehicle" means a vehicle specifically designed and
built to operate in or place a payload in the upper atmosphere or
outer space.  "Launch vehicles" include, but are not limited to,
expendable space launch vehicles and reusable launch vehicles.
   (h) "Operation of a launch site" means the conduct of approved
safety operations at a launch site to support the launching of
vehicles and payloads.
   (i) "Operation of a reentry site" means the conduct of safety
operations at a fixed site on Earth at which a reentry vehicle and
its payload, if any, is intended to land.
   (j) "Payload" means an object, including, but not limited to, a
satellite that a licensed launch site undertakes to place into outer
space by means of a launch vehicle, including components of the
vehicle specifically designed or adopted to support that activity.
   (k) "Person" means any individual and any corporation,
partnership, joint venture, association, or other entity organized or
existing under the laws of any state or nation.
   (l) "Reentry" means the return of any launch vehicle that has been
placed in a ballistic, suborbital, or orbital trajectory, and its
payload, if any, to the Earth.  "Reentry" includes all activities
involved in the postflight ground operations.  A "reentry" ends when
a launch vehicle or payload, if any, has completed its descent to
Earth and is retrieved.
   (m) "Reentry site" means the location on Earth at which a reentry
is intended to occur, as defined in a license issued or transferred
by the United States Secretary of Transportation, and any necessary
support infrastructure related to reentry or payload recovery.
   (n) "Reusable launch vehicle" means a vehicle that is designed to
launch into an orbital or suborbital trajectory, into Earth orbit in
outer space, or otherwise into outer space, that returns to Earth and
is reused for a subsequent future launch.
   (o) "Spaceport" means an entity that has been designated pursuant
to Section 15348.5.
   15348.5.  (a) The California Spaceport Authority shall designate
spaceports for the operation of launch sites, as defined in
subdivision (f) of Section 15348, or reentry sites, as defined in
subdivision (m) of that section.
   (b) Any city, county, city and county, special district, joint
powers authority, or private entity, as appropriate, may apply to the
authority for designation as a spaceport.
   (c) (1) The application described in subdivision (b) shall require
at least the following information to be submitted to the authority:

   (A) A written notice of intent to apply for a federal launch site
operator's license from the United States Secretary of Transportation
under the authority of the Commercial Space Launch Act (49 U.S.C.A.
Sec. 70101 and following), to be received by the authority no later
than 60 days prior to the submission of the application to the United
States Secretary of Transportation.
   (B) A copy of the perfected application submitted to the United
States Secretary of Transportation for a federal launch site operator'
s license.
   (C) A written notice of acceptance or denial by the United States
Secretary of Transportation for a federal launch site operator's
license.  If acceptance is granted, a copy of the license shall be
included in the written notice.
   (2) This subdivision shall not apply to any launch site operator
who is federally licensed on or before January 1, 2001.
   (d) The authority shall withdraw spaceport designation upon
receipt of notice from the Federal Aviation Administration that the
launch site operator of the spaceport no longer meets safety
requirements or that safety deficiencies in the spaceport have
remained uncorrected for a reasonable period of time after being
identified.
  SEC. 13.  Section 15363.6 of the Government Code is amended to
read:
   15363.6.  The secretary shall have the following responsibilities:

   (a) Coordinating the various trade, investment, and tourism
activities of the Technology, Trade, and Commerce Agency to ensure
that the resources that the state has invested in these programs are
used effectively and efficiently and that they foster the state's
reputation as a source of high quality, cost-effective goods and
services including tourism destinations.
   (b) Coordinating, on behalf of the Governor, the use of the
overseas trade offices by any state export program not under the
California State World Trade Commission, such as those that are
operated by the Department of Food and Agriculture and the California
Energy Commission, and by any state agency which may have occasion
to need the services of the overseas trade offices in carrying out
that agency's official duties and responsibilities.
   (c) Reporting to the Governor and the Legislature on an annual
basis about the policies, plans, budgeting, and accomplishments of
the agency and its programs.
   (d) In his or her capacity as a member of the Governor's cabinet,
coordinating the development of a state policy on economic
development and trade, and advising the Governor and members of the
cabinet of the potential impacts of regulations on the state's
business, economy, and job base.  The initial policy and
implementation strategy shall be included as a part of the secretary'
s first annual report to the Governor and the Legislature following
enactment of this chapter.  Each year thereafter, the secretary's
annual report shall discuss economic development and trade policies
including accomplishments and needed modifications.
   (e) Evaluating, at his or her discretion, the findings and
determinations required of any state agency which proposes to adopt
regulations under Article 5 (commencing with Section 11346) of
Chapter 3.5 of Part 1, including economic and cost impacts, reporting
requirements, and alternatives analyses.  The secretary shall,
during the written comment period specified pursuant to paragraph (9)
of subdivision (a) of Section 11346.5, submit written comments into
the record of the agency which proposes to adopt those regulations in
those instances when the secretary determines that the contents of
the notice of the proposed action or the supporting analysis and
initial statement of reasons do not sufficiently support the findings
and determinations of the agency.  The secretary may, at his or her
discretion, comment on other aspects of the proposed action that
significantly impact the state's business, industry, economy, or job
base, including the cumulative effects of the proposed action that
significantly impact the state's business, industry, economy, or job
base, including the cumulative impacts of the proposed action
considered along with regulatory requirements in place at the
federal, state, and local levels.
   (f) Identifying science and technology trends that are significant
to the state and developing a state strategy to address them.
   (g) Developing a state strategy for applying and commercializing
technology to create jobs, respond to industry changes, and foster
innovation and competitiveness.
   (h) Coordinating state science and technology policies and
programs.
   (i) Consulting frequently with the California Council on Science
and Technology.  The secretary may, as deemed appropriate and
necessary, request specific studies and reports from the council.
  SEC. 14.  Section 22002.5 of the Public Utilities Code, as added by
Chapter 191 of the Statutes of 2000, is repealed.
  SEC. 15.  Section 22553.2 is added to the Public Utilities Code, to
read:
   22553.2.  No district may exercise any of the authority granted
under this part for the development of spaceports unless it has been
designated as a spaceport pursuant to Section 15348.5 of the
Government Code.
